Global information group, Reuters, has this morning unveiled a first half pre-tax profit of £87 million, following a loss of £10 million for the same period in 2002. This figure is substantially ahead of a £57 million forecast from Merrill Lynch.
However, despite the strong pre-tax profit figure, Reuters’ overall revenues were down by 12% to £1.34 billion. This is at the bottom end of the range of market expectations, with Merrill Lynch expecting £1.36 billion.
“Reuters core revenues are in line with our expectations and we have narrowed our guidance for the full year to a decline of around 11%,” said chief executive Tom Glocer.
The group also said that cost savings are ahead of schedule, with £30 million of the £45 million expected this year under its ‘Fast Forward’ plan already achieved.
Revenues at Instinet, Reuters’ electronic share trading service, were down by 8.6% at £275 million, although the division did return to a pre-tax profit of £25 million, following a loss of £83 million in 2002.
“Although market conditions continue to be tough, particularly in Europe, we have seen real improvement in the competitiveness of our products and are making good progress with Fast Forward. Our cost savings are ahead of plan and we now expect savings of £55 million from Fast Forward this year.
All in all, I am pleased with the progress we have made so far. We still have a long way to go, but I am confident that we are on the right track,” said Glocer today.
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